Former top executives of Twitter have taken legal action against Elon Musk and his company, X Corp., alleging unpaid severance totaling over $128 million.
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What started as a $44 billion acquisition of Twitter by Elon Musk’s X Corp. has now been into a courtroom battle over unpaid severance payments totaling more than $128 million.
Elon Musk’s acquisition of Twitter in 2022 led to the termination of several executives, including former CEO Parag Agrawal, CFO Ned Segal, and legal officers Vijaya Gadde and Sean Edgett.
The executives argue that Elon Musk unjustly fired them without cause, denying them severance payments outlined in their contracts.
Elon Musk allegedly fabricated reasons for their terminations, citing gross negligence and willful misconduct, without providing evidence to support his claims.
The lawsuit shows Elon Musk as a figure who operates with impunity, refusing to honor contractual obligations and believing that rules do not apply to him.
Elon Musk’s alleged refusal to pay severance with numerous lawsuits filed against him for unpaid bills, including those from former Twitter employees and vendors.
Elon Musk’s biographer, Walter Isaacson, quotes him as vowing to deny severance payments to the executives, illustrating a personal vendetta against them.
The executives’ contracts stipulated severance benefits in the event of Twitter’s privatization, which occurred when Musk took over the company.
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Severance packages included one year’s salary and unvested stock awards, with golden parachute payments in case of involuntary termination.
Musk’s acquisition of Twitter, rebranded as X Corp., for a $44 billion in 2022. However, the aftermath of this acquisition has been marred by controversy, as former CEO Parag Agrawal and other high-ranking executives found themselves terminated without clear cause.
The lawsuit alleges that Musk orchestrated these terminations to avoid honoring contractual severance agreements, purportedly fabricating reasons for dismissal.
Such actions, according to the plaintiffs, shows the behavior where Elon Musk, buoyed by his wealth and influence, flouts rules and obligations with impunity.
Central to the legal dispute are the severance agreements outlined in the executives’ contracts. These agreements entitle them to huge compensation in the event of termination without cause, including one year’s salary and unvested stock awards.
The executives argue that Musk’s attempts to withhold severance payments constitute a breach of contract and a disregard for their rights as employees.
They allege that Musk’s actions were motivated by personal animosity, as evidenced by his public statements expressing disdain for Twitter’s former leadership.
The executives’ contracts stipulated severance benefits in the event of Twitter’s privatization, which occurred when Musk took over the company.
Severance packages included one year’s salary and unvested stock awards, with golden parachute payments in case of involuntary termination.
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